The Department for Work and Pensions has confirmed a significant escalation in its verification procedures for Universal Credit claims, introducing rigorous new measures to combat fraud and erroneous payments within the benefits system.
New Legislative Powers Enable Enhanced Scrutiny
Following the enactment of the Public Authorities (Fraud, Error and Recovery) Act, DWP officials now possess expanded authority to request detailed bank account information from financial institutions. This legislative framework empowers the department to directly access account data linked to benefits claimants, initially targeting Universal Credit, Employment and Support Allowance, and Pension Credit recipients.
Comprehensive Verification Process
The enhanced verification system incorporates multiple layers of scrutiny:
- Targeted case reviews will continue through 2031, focusing on claims identified as potentially inaccurate
- Periodic redeclaration requirements for Universal Credit claimants to ensure ongoing accuracy
- Evidence submission mandates where claimants must provide documentation including bank statements to verify their circumstances
DWP minister Sir Stephen Timms emphasized the government's commitment to achieving substantial savings, stating: "Since Autumn Budget 2024, the Government has committed to gross savings of £14.6 billion up to the end of 2030/31 from fraud, error and debt activity in Great Britain."
Direct Recovery Authority Introduced
Under the newly implemented legislation, DWP officials now possess unprecedented authority to directly recover funds from bank accounts of individuals who owe money to the department and refuse repayment. This represents a significant expansion of recovery capabilities, as previously the department could only reclaim funds through PAYE earnings deductions or benefit payment reductions.
Parliamentary Scrutiny and Expansion Potential
The measures have drawn parliamentary attention, with Liberal Democrat MP Max Wilkinson inquiring about specific fraud prevention steps regarding Universal Credit recipients claiming for unoccupied properties. The legislation explicitly allows for potential expansion of these verification measures to additional benefits beyond the initial three targeted programs.
Neil Couling, a senior DWP official, explained the department's approach in a 2023 briefing: "Customers are asked and supported to provide evidence, including bank statements, to identify any discrepancies." This verification project, launched in 2022, represents a systematic effort to ensure benefit accuracy while protecting taxpayer funds.
The enhanced measures include notification protocols for individuals facing fund recovery, providing opportunities for dispute resolution before direct account access occurs. This balanced approach aims to target primarily those who have left the benefits system while maintaining outstanding debts to the department.
